Advertisement
Canada markets open in 4 hours 47 minutes
  • S&P/TSX

    22,107.08
    +194.56 (+0.89%)
     
  • S&P 500

    5,248.49
    +44.91 (+0.86%)
     
  • DOW

    39,760.08
    +477.75 (+1.22%)
     
  • CAD/USD

    0.7352
    -0.0020 (-0.27%)
     
  • CRUDE OIL

    81.81
    +0.46 (+0.57%)
     
  • Bitcoin CAD

    96,107.07
    +1,171.13 (+1.23%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,214.80
    +2.10 (+0.09%)
     
  • RUSSELL 2000

    2,114.35
    +44.19 (+2.13%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • NASDAQ futures

    18,490.00
    -13.75 (-0.07%)
     
  • VOLATILITY

    12.97
    +0.19 (+1.49%)
     
  • FTSE

    7,952.50
    +20.52 (+0.26%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • CAD/EUR

    0.6809
    +0.0004 (+0.06%)
     

Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

ADVERTISEMENT

Darden Restaurants (DRI)

Founded in 1968 and based in Orlando, FL, Darden Restaurants is one of the largest casual dining restaurant operators worldwide. The company has operations in the United States and Canada with more than 1,700 restaurants.

DRI is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 19.3X for the current fiscal year compared to the Retail - Restaurants industry's P/E of 22.1X. Additionally, DRI has a PEG Ratio of 1.9 and a Price/Cash Flow ratio of 14.3X. Value investors should also note DRI's Price/Sales ratio of 1.8X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. 10 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.11 to $7.91 per share. DRI has an average earnings surprise of 3.4%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding DRI to their portfolios.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research